CATHY McGowan and a Victorian Trades Hall Council official clashed verbally outside the Indi MP's Wangaratta office on Thursday.
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On the second day of the union's campaign in Indi to convince Ms McGowan to back workers and not the government on penalty rates, union official Wil Stracke said she was surprised the independent MP also grabbed her hands during an exchange captured on video.
“She gave me the finger point at one stage and held my hands,” Ms Stracke said.
“I think surprised is the right word because I've done a few activities and actions with union members and I don't think anyone has held my hands before.
“We've talked to a lot of people in town and had about 2000 people sign a petition asking Cathy to stand up for penalty rates.
“I would imagine as a local MP that would give you pause for thought.”
Ms McGowan's office was approached for comment about the physical contact with Ms Stracke, but declined the right of reply.
As protesters chanted “yes or no” to whether Ms McGowan would stand up for workers she emerged from inside her office and asked “how many here are from Indi?” and also congratulated the protesters for choosing orange-coloured balloons.
Ms Stracke agreed the question being asked of Ms McGowan was a hypothetical one, but workers were still entitled to know where the federal member stood.
The Indi MP has maintained the matter was an issue for the Fair Work Commission.
In a prepared statement Ms McGowan said: “I understand how important changes to wages are, especially for those on low pay.
“I also understand how important it is that we have an independent umpire and that wages are not set by politicians.
“There is currently no vote to be taken on penalty rates, which are set by the FWC.”